Get a Fresh Financial Start in Canada
Overwhelmed by credit card debt, CRA tax arrears, or wage garnishments? Under federal law, only a Licensed Insolvency Trustee (LIT) can immediately stop collection calls, freeze interest, and eliminate up to 80% of your unsecured debt.
Which Government Debt Relief Option Is Right for You?
Compare Canada's two federally regulated insolvency solutions to find the path that fits your household budget and long-term goals.
Consumer Proposal
An agreement between you and your creditors to pay back a negotiated percentage of your unsecured debt over up to 5 years.
- Debt Reduction: Slash unsecured debt balances by up to 80%.
- Keep Your Assets: Protect your home, vehicle, RRSPs, and personal assets.
- Interest Rate: Permanently frozen at 0%.
- Collection Calls: Stopped legally upon filing.
- Credit Impact: R7 rating (removed 3 years after full completion).
Personal Bankruptcy
A formal legal process designed to eliminate eligible unsecured debts entirely and provide a complete financial clean slate.
- Timeline: Discharge in as little as 9 months (first-time filers).
- Debt Elimination: 100% discharge of eligible unsecured debt.
- Asset Protections: Retain provincial exempt assets (car, clothing, furniture).
- Collection Calls: Stopped legally upon filing.
- Credit Impact: R9 rating (removed 6–7 years post-discharge).
Your First Trustee Evaluation is 100% Free & Zero-Obligation
When you meet with an OSB-registered trustee, you receive a complete, objective review of your finances. You will get a precise breakdown of how much you can save, how your assets are protected under provincial law, and how to stop debt collectors immediately.
- Confidential Assessment: Review budget, income, and debt ratio.
- Custom Savings Plan: Compare exact proposal vs. bankruptcy monthly costs.
- Remote or In-Person: Meet virtually from home or at a local branch office.
Find a Licensed Insolvency Trustee Office Near You
We connect Canadians in every province and territory with local, OSB-registered trustees for in-person or 100% virtual evaluations.
Provincial Asset Exemptions in Canada
Canadian law protects essential personal assets during insolvency. Select your province or territory to see exact vehicle, home equity, and tool exemption limits:
Frequently Asked Questions About Canadian Insolvency
What is the difference between a Consumer Proposal and Personal Bankruptcy?
A Consumer Proposal is a settlement agreement where you pay back a portion of your unsecured debt over up to 5 years, allowing you to retain 100% of your assets (home equity, vehicle, RRSPs). Personal Bankruptcy eliminates eligible debt completely in as little as 9 months, but non-exempt assets may be surrendered to the estate.
Can a Consumer Proposal or Bankruptcy eliminate Canada Revenue Agency (CRA) tax debt?
Yes. Personal income tax debt, director liability, and GST/HST remittances owed to the CRA or Revenu Québec are unsecured debts that are fully dischargeable in both Consumer Proposals and Personal Bankruptcy.
How much does it cost to speak with a Licensed Insolvency Trustee?
Your initial consultation is 100% free with zero obligation. Trustee administration fees are strictly federally regulated tariff fees drawn directly out of your single monthly proposal or bankruptcy payment. You never receive a separate invoice from a trustee.